Nitin Spinners - Soft Raw Material Prices, Better Capacity Utilisation To Drive Profitability: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.We met with the management of Nitin Spinners Ltd. to gauge the company’s business outlook. The company is a leading textile company in India, which specialises in manufacturing cotton and blended yarn, knitted fabrics, greige and finished woven fabrics.The company was established in 1992 and is headquartered in Bhilwara (Rajasthan). Nitin Spinners has an installed capacity of 435,000 spindles and 35,864 rotors, produces 110,000 tonnes of yarn, 11,000 tonnes of knitted fabrics and 40 million meters of finished woven fabric. The company has carved a niche for itself in India’s textile industry. Management believes capacity expansions across segments would fuel the company’s revenue growth. Nitin Spinners is focusing on debottlenecking its existing manufacturing facilities to increase production base and is enhancing the share of value-added products in its portfolio to improve profitability. The company serves both local and international markets and is present in more than 50 countries. Exports constituted 58% of the company’s revenue (9M FY24). Management’s upbeat outlook stems from soft cotton prices (fallen below international levels), pick up in exports (improving yarn demand), and higher VAP contribution. The company's strategic focus would revolve around optimizing capacity utilisation, enhancing product mix, exploring newer geographies, and focusing on debottlenecking manufacturing facilities to increase production base and cost efficiency. We do not have a rating on the stock, which currently trades at 9.5 times FY25E earnings per share of Rs 40.7 (Bloomberg consensus)..Click on the attachment to read the full report:.Balrampur Chini - Polylactic Acid Opens New Growth Avenues: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nitin Spinners - Soft Raw Material Prices, Better Capacity Utilisation To Drive Profitability: Systematix

Nitin Spinners is focusing on debottlenecking its existing manufacturing facilities to increase production base and is enhancing the share of VAP in its portfolio to improve profitability.

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